Avoid These Potentially Costly Mistakes When Buying a Home

Avoid These Potentially Costly Mistakes When Buying a Home

Knowing what to avoid when buying real estate can be just as important as knowing what to look for. If you are looking to buy a home, your credit will be a very important factor in determining your interest rate and eligibility. Even a small percentage rate increase in a mortgage can cost tens of thousands of dollars over the life of a loan. It is with that thought in mind we present these financial moves to avoid.

  • Don’t apply for new credit. Applying for additional credit cards can raise a red flag for lenders.
  • Don’t make any late payments or skip any payments. A sudden influx of late payments can cause problems.
  • Don’t make a major purchase like a car until after you have closed on your desired property.
  • Don’t increase your debt or add to your credit card balances.
  • Don’t close any of your credit accounts.
  • Don’t deplete your cash assets like savings or tap into your life insurance cash balances.
  • Don’t change your employment status. Of course this may not always be in your control.

Even if you have been pre-approved for a loan, a significant change in any of the above circumstances between your time of application and closing could potentially cause a problem. If you have been pre-approved, try to keep your financial circumstances status quo until you have closed on your property.

If you are considering real estate in the Lafayette, Contra Costa County region of California contact Cary Amo. Cary can help you with expert assistance that can help ensure your real estate transaction is a smooth one.

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